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1 1 (October 2, 2019)

handle is hein.crs/govbbfq0001 and id is 1 raw text is: ICongressiora) Research Service ~~~Info rigthe egislative debatecsancel19l4 Updated October 2, 2019 Railroad Retirement Board: Retirement, Survivor, Disability, Unemployment, and Sickness Benefits Introduction The Railroad Retirement Board (RRB) administers retirement, survivor, disability, unemployment, and sickness benefits for railroad workers and their families under the provisions of the Railroad Retirement Act (RRA) and the Railroad Unemployment Insurance Act (RUIA). Work for railroads engaged in interstate commerce, railroad associations, and railroad labor organizations is covered by the railroad benefits system instead of Social Security or the federal-state unemployment compensation system. During FY2017, the RRB paid nearly $12.5 billion in retirement and survivor benefits to approximately 548,000 beneficiaries. Unemployment and sickness benefits totaling $106 million were paid to approximately 28,000 claimants. The number of railroad workers has been declining since the 1950s, although the rate of decline has been irregular and recent years have seen increases in railroad employment after an all-time low of 215,000 in January 2010. Since reaching a low in 2010, railroad employment again peaked in April 2015 at 253,000, and then declined through FY2017, falling to 221,000. The RRB consists of three members appointed by the President with the advice and consent of the Senate to staggered five-year terms. One member is appointed on the recommendation of the railroad industry, one on the recommendation of railroad labor, and the chair is appointed to represent the public. Retirement, Survivor, and Disability Benefits Similar to Social Security, the RRB provides retirement, survivor, and disability benefits to covered employees and their families who meet insurance requirements by working in covered railroad employment and paying RRA payroll taxes (see Table 1). Retirement Benefits Tier I retirement annuities are designed to be nearly equivalent to Social Security retirement benefits and are calculated using the Social Security benefit formula. To be eligible for retirement benefits, a person must have at least 10 years of railroad service, or at least five years after 1995 and a sufficient combination of railroad service and work covered by Social Security. Tier I benefits are more generous than Social Security in that, at the age of 60, railroad workers with at least 30 years of covered railroad work may receive unreduced retirement annuities, unlike Social Security which only pays unreduced benefits at full retirement age and pays reduced benefits at age 62. Because work covered by Social Security is counted toward tier I benefits, if a railroad retirement annuitant is also awarded Social Security benefits, those benefits are subtracted from tier I benefits. Tier II retirement annuities are paid in addition to tier I benefits and any private pension and retirement savings plans offered by railroad employers. Tier II benefits are similar to private pensions and are based on the worker's 60 highest months of railroad earnings. Table I. Railroad Retirement, Survivor, and Disability Benefits, March 2019 Type of Benefit Number of Benefits (% of Total Benefits) Retirement 188,893 (29.6%) Supplemental Annuities 119,032 (18.7%) Disability 71,698 (11.3%) Spouses 147,975 (23.2%) Surviving Spouses 99,462 (15.6%) Surviving Children 8,115 (1.3%) Partition Payments 1,960 (0.3%) Total 637,135 (100%) Source: Railroad Retirement Board, Bureau of the Actuary, Quarterly Benefit Statistics, January-March 2019, July 2019, Table I. Notes: Partition payments are made to spouses pursuant to divorce rulings. Beneficiaries may be eligible for more than one type of benefit. Supplemental annuities are paid to employees first hired in railroad work before October 1981, and who are aged 65 or older with at least 25 years of railroad service, or aged 60 with at least 20 years of service. Workers must also have a current connection to the railroad industry (generally one year of railroad work in the previous 30 months). In addition, vested dual benefits are paid to those who were insured for both railroad retirement and Social Security in 1974 when the two-tier railroad retirement benefit structure was established. Disability Benefits Railroad workers may be eligible for disability benefits if they are unable to work because of physical or mental impairments. Total disability benefits are paid to workers who are permanently and totally disabled and unable to perform any work. Occupational disability benefits are paid to workers unable to perform their regular railroad https:!icrsreports cong --sg 0

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